Step 1: Concept
Sulphonation of phenol followed by nitration is a route to avoid oxidation of phenol.
Step 2: Meaning
Excess acid leads to multiple substitutions on the highly activated ring.
Step 3: Analysis
$H_2SO_4$ creates phenol-2,4-disulphonic acid (X). Conc. $HNO_3$ then replaces sulphonic groups to form 2,4,6-trinitrophenol, known as picric acid (Y).
Step 4: Conclusion
X is Phenol-2,4-disulphonic acid and Y is picric acid.
Final Answer: (E)